Balance of Payments - AshokBhat/investing GitHub Wiki

Current Account

A country's current account can be calculated by the following formula:

Where

• CA is the current account,
• X and M are respectively the export and import of goods and services
• NY the net income from abroad
• NCT the net current transfers

Current Account Deficit

• Current account deficit means that an economy is not paying its way
• Country has to draw in money from elsewhere and, as a consequence, building up corresponding liabilities
• Typically via an increase in external debt.